Good news Stories

[POSSUM THE CAT]

Minimoke They are only using Figures from sales not properties on the market and the lower the volume the more skewed the median or even the average price can be .

[minimoke]

Minimoke They are only using Figures from sales not properties on the market and the lower the volume the more skewed the median or even the average price can be .

Values on anytihing is typically taken from sales - and its probably no different from the share market. The market places a value on a company and this value is the price paid for its shares which then converts to the market capitilsation. You don't hear of people valuing a company by the number or size of Bids / Asks. The number and size of Bids / Asks may help determine the future value - but not the current value. And property is pretty much the same.

It may be a shortage of properties skews the market - but the median / average prices will be adjusted in the future when the shortage changes. We can hypothesise on how the median may be skewed but we'd end up in a subjective discussion around where the shortages are (eg shortages of $200,000 properties or shortages of $1m properties) or perhaps where those shortages are - Is it Auckland short or is there a national shortage. We could speculate that there was a glut in Nov 07 or maybe there wasn't. All usefull discussion but they don't value the market at a point in time.

[minimoke]

REINZ Oct 09 values are out and the median is now at $355,000, $3,000 more than the high everyone refers to in Nov 07. Up 1.4% for the month on reduced sales volume. Up 9.2% since January. Days on market the lowest since July 07.

I supose we shouldn't let November go by without comment. No surprise to see avergage sale price up $11,200 from last month and $51,700 from January.

Looks like all the "Bad News" has been flushed out so probably time to close this thread down. Lets look to update on Shrewdys thread next month to see if he made the right call.

[neopoleII]

with the 10's of millions, if not 100's of millions of dollars dished out by the government every week in benifits, housing supliments and working for families....... no wonder there hasnt been a property crash.

in the meantime the government is borrowing 250 million a week to support the residential housing sector............
sooner or later, the bubble has to pop.

[beacon]

And the country will pop with it. we've just begun to witness the aftermath of the destruction of US property values. Like dominoes they fell, and yet we are none the wiser. Like lemmings (or sheep) we just know to follow. When will we wake up and start thinking for ourselves? I'm beginning to agree with Col. John P. Stapp who said :The universal aptitude for ineptitude makes any human accomplishment an incredible miracle

Bollard was holding the dogs at bay, yet he looks like wavering to give in too. When you bust property as a store of value and the capital markets are a shambles, what alternative to store value do you offer to Mrs and Mr. Ordinary. Discipline the banks I say, make them lend. Inflation is a cheap cost to pay in the interim. And give some teeth to our capital market enforcers...

[neopoleII]

whats that saying?.........
its hard to teach an old dog new tricks.

but if it really hurts........ they learn.
look at the all the finance co's that have collapsed...... i think alot of them have learnt........
most of that cash went into property speculation....... so that source of cash is gone.
the banks have also had a feel of heat as well.
the politicians have had a big scare........
the reserve bank is making public recomendation!!!!
and this country is still massively indebted.....
add it up, a change is on the way.
the discussions regarding residential property investment is in the public forums, ie, tv, newspapers, internet, goverment working groups, rbnz, etc is a clear signal and warning that change is coming.

[POSSUM THE CAT]

Beacon He is to gutless to stop the housing bubble the sooner he makes 20% deposits compulsory & gets the banks paying higher interest to depositors to encourage saving the better. Most savers would like 6% plus deposit rates from banks & 205 reduction in house prices.

[Dr_Who]

This is the same guy that called the property market to crash 30-40% during the financial crisis and now he is warning there maybe another crash coming... LOL. What a laugh!


Bernard Hickey: Caution on a housing 'boom'

http://www.nzherald.co.nz/business/n...ectid=10617532

[Steve]

This is the same guy that called the property market to crash 30-40% during the financial crisis and now he is warning there maybe another crash coming... LOL. What a laugh!


Bernard Hickey: Caution on a housing 'boom'

http://www.nzherald.co.nz/business/n...ectid=10617532

I thought it was the guy Keirin Trass who was suggesting a 30% drop?

[AMR]

No Bernard was talking about the Westpac reports regarding the effects of a land tax and ringfencing.